Amex, Discover To End Credit Card Over-Limit Fees

NEW YORK — American Express and Discover customers will soon be free of fees for charging over their credit limits.

The two companies said separately Tuesday they will soon end the charges that have generated widespread criticism from consumers.

The moves come before credit card regulations set to take effect in February limit the way credit card issuers may charge such fees. Under the legislation signed by President Obama in May, consumers must agree to pay a fee before they can charge more than their credit limit, and card issuers must tell their customers how much those fees would be.

American Express currently assesses a $35 fee to most customers whose balances exceeded their credit card limits.

Comments

[miamia]

I will soon be getting rid of all forms of credit cards. I'm finished with the rat race.

Let them do whatever they want.

[J Q]

Do these card companies - especially American Express - think that we are not going to remember how much they have scr_wed us? I've never missed a payment and they just sent the 2nd APR increase on my blue card. Let's through the legislative book at them...

[Peacein09]

Didn't they just get rid of all their deadbeat customers awhile back? I think I remember AmExp was sending out letters closing accounts to thousands. Now they just have rich cardholders/

[Donns]

If you have a Credit Card what's wrong with the company wanting you to carry your end of the bargin and pay your account? I don't much like a lot of things that Banks and Credit card companies do but I do pay my bills on time because that's what I agreed to do. If I can't do it I don't use the service.

[rlugbill]

I just got a notice from American Express that they were raising the interest rate on my card even though I have been paying regularly and have perfect credit. I'll probably write to them and tell them no and they will close my account.

Any chance American Express sent a press release about the no over-the-limit fees to Huff Post? Good publicity for American Express. They are going to have to change things in Feb. anyway, so might as well change the policy ahead of time and send out a press release and get some publicity about it.

I might just write to American Express and tell them that I am modifying the terms of our agreement and if they don't respond within 30 days, they will have automatically agreed to my new terms. 0% interest and I just pay it whenever I feel like it. And a free vacation to the Bahamas. And a new Toyota Prius.

[tonewheel]

I received the same letter for an AMEX Blue Card I have, which I no longer use. But it goes further:

We are raising your APR on purchases and cash advances.
We are raising the APR on any balances that have a penalty rate because of a late payment.
We are increasing the late fee.

Why is HuffPo only reporting half the story???

[J Q]

How many people here just got a new APR increase letter from American Express?

(Just my second increase for the blue card yesterday).

[FoonTheElder]

What's the catch?

[apoyo]

Why not just deny the charge that would go over the limit?
How hard is that?
They let you go over the limit so they could gouge more money off of you.

[MIMom]

Absolutely.

What should also be cr!minal is them charging a overlimit ON THEIR INTEREST. You are responsible and stay under limit, yet they raise your interest, you go over limit b/c of the interest, and then you get a $49 fee.

Genius, I tell ya.

[BigAl72]

They are inviting you to max out your cards.

[ObamAtomic]

They will fine another scam to steal people money legally.

[ModernTimes1]

Positive tiny step towards some fairness.
Keep going, one step and 999,98 miles to go to achieve it.

[vew]

They may stop the over-limit fee but others will be raised or new ones created. The credit card companies are not in the business for humanitarian reasons1

[Skyhawk]

They'll gouge you while they can.

[Raul Garcia]

Interesting, I exceeded my credit limit the first time in my life on my Chase card, have never been late or missed a payment and they dinged me $39, and have refused to grant a one time courtesy fee waiver.

Schmucks.

[Essentialboom]

Well i just recieved a letter from Amex saying thier raising late fees and interest rates if you pay late one time along with another fee that I cant remember at this time. So, I assume thier is no money in overlimit fees anymore. Go figure.

[verticallychallenged]

Yeah, BofA did that to me, along with halving my credit limit (which the only reason my credit score is less than flawless).

I try not to take it out on the customer service employees; it's the crooks at the top who infuriate me.

[strawberrries]

You are 'programmed to buy'? Pul-lease, you have free will, start by limiting purchases to things you actually NEED, not just want. I also think about what goes into my mouth (food & meds). We all have choices.

[paulfromportland]

This story makes me feel all warm and fuzzy - Almost as warm and fuzzy as the letter from AmEx of yesterday, which told us they were raising our interest rates on their card.

[surlyguvna]

I sure these companies will find new ways to bleed their customers dry...in one ear, out the other.

[Bitsko]

True, but how's about folks just not using these companies?

[Opti]

Wages have been stagnant since the 70s. Even taking into account the lowered price of consumer goods from China and other developing nations. I know a lot of people who wouldn't eat if they didn't buy food with credit. Not to mention those who face a medical emergency and have nothing left from their paycheck after paying rent and transportation. The working poor are a reality and the banks are the new company store.